A review of the 2016 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2016 tax status: In 2017,Gregory receives a reimbursement for last year's medical expenses of $1,200.As a result,Gregory must
A)include $200 in gross income for 2017.
B)include $1,200 in gross income for 2017.
C)reduce 2017's medical expenses by $1,200.
D)amend the 2016 return.

Question

A review of the 2016 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2016 tax status:  In 2017,Gregory receives a reimbursement for last year's medical expenses of $1,200.As a result,Gregory must
A)include $200 in gross income for 2017. 
B)include $1,200 in gross income for 2017. 
C)reduce 2017's medical expenses by $1,200. 
D)amend the 2016 return.

Quizplus · Accepted Answer

The Answer of A review of the 2016 tax file of Gregory,a single taxpayer who is age 40,provides the following information regarding Gregory's 2016 tax status:  In 2017,Gregory receives a reimbursement for last year's medical expenses of $1,200.As a result,Gregory must
A)include $200 in gross income for 2017. 
B)include $1,200 in gross income for 2017. 
C)reduce 2017's medical expenses by $1,200. 
D)amend the 2016 return.

A Review of the 2016 Tax File of Gregory,a Single